Financial advisor Ric Edelman: It is recommended that the proportion of cryptocurrency allocation in the portfolio can reach up to 40%

Odaily News Well-known financial advisor Ric Edelman recently said on CNBC's "Crypto World" that the allocation ratio of cryptocurrencies in a portfolio can be as high as 40%, which is in stark contrast to the 1% allocation he recommended in his 2021 book "The Truth About Crypto". As the head of the Digital Asset Financial Professionals Committee, Edelman explained that four years ago, the market was uncertain whether the government would ban Bitcoin, whether the technology would fail, or whether institutions would adopt it, and "today, all of these problems have been solved, and cryptocurrencies have become mainstream assets."

Edelman said that Bitcoin's price movements are uncorrelated with traditional assets, making it a powerful portfolio diversification tool that can improve risk-adjusted returns. He believes that the crypto asset class offers "higher return opportunities that are difficult to obtain in almost any other asset class," and said that the market's forecast that Bitcoin will reach $150,000 to $250,000 by the end of the year is "relatively conservative." It is reported that Ric Edelman is one of the founders of Edelman Financial Engines, which manages assets of more than $290 billion. (CNBC)